Las Vegas Convention Center Expansion Proposal To SNTIC From April 28th 2016

8/17/2019 Las Vegas Convention Center Expansion Proposal To SNTIC From April 28th 2016

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Committee Request MaterialsConvention Centers


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Convention Center Follow-Up Information RequestsTable of Contents

1. Are there questions relative to the current role of the LVCVA and/or current LVCVA

expenditures? a. LVCVA budget and expenditures

i. Review of rental rates, current ranking among competitors ……………....1 ii. Comparative analysis of how room taxes are distributed ……………….....2

iii. Alternative LVCVA budget scenarios that reduce spending by $15 millionto $30 million …………………………………………………………… .. 3

iv. Summary of the 99-day requirement booking limitation (IRS requirement);is there a potential work around? ………………………………………….4

v. LVCVA list and map of recent property acquisitions …………………….5 vi. History and current regulations governing the makeup of the LVCVA’s

board ………………………………………………………………………6 vii. Would legislative action be required to change the makeup of the LVCVA

board? …………………………………………………………………… ..7

2. Is the committee comfortable with the cost estimates and financing projections

provided by the LVCVA?

a. Cost of upgrading the existing facilitiesi. Renovation costs for competitive facilities………………………………..8

ii. Size comparison of expansions, including non-leasable space……………9 b. Cost of newly constructed facilities

i. LVCVA project estimates compared with the recent Mandalay Bayexpansion …………………………………………………………… .…..10

c. Are LVCVA pro forma projections accurate?i. LVCVA financial model summaries………………………………….….11

d. Does the LVCVA have a long-term capital plan to invest in facility infrastructureupgrades on a regular basis to keep up with industry standards?

i. LVCVA current maintenance budget, including what is expensed and whatis capitalized…………………………………………………………… ...12

ii. Detail on the makeup of the $100 million in preconstruction costs………13 e. What is the current bonding capacity of the LVCVA? What is the long-term

outlook?

i. LVCVA bond refunding schedules………………………………………14 ii. LVCVA annual bond capacity estimates to the extent those are not clarified

in the pro forma model…………………………………………………...15


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3. Is it possible for improvements of the current facility (i.e., Las Vegas Convention

Center) to be done without construction of expansion space to facilitate the

maintenance? What is the potential for Las Vegas/LVCVA to keep major conventions

through space sharing with existing or expanded private convention space?a. What is the potential loss to Las Vegas/LVCVA resulting from a progressive

improvement schedule that takes convention halls and meeting spaces offline oneat a time? Additional follow up required

i. How business interruption was managed by other facilities that recentlyrenovated (Moscone Center example) ……………………….…...refer to 8

ii. Potential impact number; facts citied included $15 to $20 million annually(in businesses); 1 million attendees; $1 billion in visitor spending; working papers behind this estimate; estimate for large and small conventions; whoare the 14 at-risk shows?.............................................................................16

iii. Where else can they go? Hotel rooms and convention space by major

competitive market ………………………………………………………17 b. Is there capacity for local facilities to accommodate the space that is taken offline?

What would the space shortfall, if any, be? What would be the increase in cost toconventions, tradeshows, etc., if any? Are there other considerations forconventions, such as user/vendor experience, that would impact theirability/willingness to divide their shows among local facilities?

i. Summary of convention/meeting space in Las Vegas.……………………18 ii. Summary of all planned, proposed and under construction space in the

development pipeline…………………………………………………… .19

4. Is southern Nevada maximizing the utility of room taxes? What is the capacity of room

taxes? a. How does Nevada’s room tax compare with other competitive jurisdictions? i. Room tax comparison and comparison of how room taxes are distributed;

also, does sales tax apply to the sale of hotel rooms? …………………...20 b. What are coverage requirements for debt secured by room taxes? How are excess

room taxes (coverage values) allocated each year?i. Question for modeling is can the LVCVA increase the utility of available

funds by reducing coverage requirements while remaining fiscallyconservative?..............................................................................................21

c. Additional follow ups:i. What is the current bonding status of the local government collection

allowance for the room tax?.......................................................................22 ii. Online Travel Agencies (OTA’s) as tax revenue source……………….....23 iii. How are local governments currently using the room tax?...........refer to 22 iv. How are schools currently using the room tax?..........................................24 v. Statute that provides for the implementation of the room tax local collection

allowance …...………………………………………………………… ....25 vi. What share of the room tax is retained by Clark County?..........................26


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5. Other potential issues for discussion by the committeea. What is the LVCVA’s plan for governance/oversight of the LVCC financing and

construction process, and does a process similar to the CCSD Bond Oversight

Committee structure have merit?i. Statutory construct of the CCSD bond oversight committee ……………..27

6. Other Documents a. LVCVA Financial Compliance and Industry Recognition ………………………28


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Section 1

Comparison of Convention Center Rental Rates

The Southern Nevada Tourism Infrastructure Committee requested information on rental rates for the LasVegas Convention Center compared with other facilities in the United States. This section contains asurvey of estimated daily rental rates from 20 competitive convention facilities ranked from highest tolowest.


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Section 2

Comparison of Lodging Tax Distribution

The Southern Nevada Tourism Infrastructure Committee requested information about how much revenuegenerated from lodging taxes in major cities is distributed to tourism-related programs. This sectioncontains a summary of lodging tax distributions in major cities throughout the United States. For anationwide ranking of lodging tax rates, see section 20.


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Section 3

Las Vegas Convention and Visitors Authority

Budget Savings Alternatives

The Southern Nevada Tourism Infrastructure Committee requested that the Las Vegas Convention andVisitors Authority (“LVCVA”) provide an alternative budget that reduces spending by $15 million to $30million. The LVCVA is working on this request.


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Section 4

Private Activity Use Restrictions on LVCVA Leases

The Southern Nevada Tourism Infrastructure Committee requested information about the “99 Day Rule”restriction on lease agreements at LVCVA facilities. This section contains a summary and explanation ofthe applicable Internal Revenue Service regulations regarding this rule.


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LAS VEGAS CONVENTION AND VISITORS AUTHORITY

Private Activity Use Restrictions (“99 Day Rule”)

March 2016

Las Vegas Convention Center (LVCC) expansions and renovations are funded through

tax-exempt municipal bonds that are subject to complex“private-use” limitations in order

to maintain tax-exempt status and lower borrowing rates in compliance with Internal

Revenue Code (IRC). Consequently, the LVCVA permits fac ility leases to be executed for

a number of future years, as long as the cumulative number of chargeable days does

not exceed ninety-nine (99).

Treasury regulations state that interest on state and local government bonds is taxable if

the bonds are private activity bonds, unless a specific exemption is included in the

Internal Revenue C ode. The private business use test is met if more than ten percent (10%)

of the proceeds of an issue are used in the trade or business of a non-governmental

person (IRC § 141). Treasury regulation 1.141-3(d)(3)(i)(a) states that certain private

business uses of 100 days or less are not considered to be “private use” and therefore are

not counted in assessing compliance with the 10% private use limitation.

The Las Vegas Convention Center (LVCC) is leased almost entirely to private entities for

tradeshows/conventions, so we must comply with 1.141-3 in order to maintain tax-exempt

financing eligibility. This is the rationale for establishing the “99-day limitation” for

cumulative executed lease dates. Shows can, and do, reserve additional dates in future

years past contracted dates. They then execute those additional contracts as current

show dates conclude, opening new days under the 99-day window.

Unlike tradeshow facility leases that meet this 99-day exception, the LVCVA is required to

consider its long-term space leases to its building partners (e.g., concessionaire and

printing and shipping services) as private uses that are taken into account in assessing

compliance with the 10% private use limitation.


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Section 5

LVCVA Land Acquisitions

The Southern Nevada Tourism Infrastructure Committee requested information about land acquisitions by the Las Vegas Convention and Visitors Authority. This section includes a list of land acquisitions since2006. The list includes details about the acquired parcel such as appraised value, purchase price and land purpose. A map showing the acquired parcels in relation to the Las Vegas Convention Center is alsoincluded.


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dress APN Acreage Appraiser Name

Appraisal

Value

Actual

Purchase

Price

Purchase vs.

Appraised Price

(% Difference) Land Purpose

Board

Approval

Date

Transaction

Date

33 Cambridge 162-15-501-011 0.48 Gary Kent $2 ,40 0, 00 0 $ 1, 800 ,00 0 -25.0% Platinum lot; add'l parking,

storage and freight

marshaling areas

10/10/06 10/30/06 $0 No additional costs

60 Joe W. Brown 162-10-802-001 0.45 Sheli Lowe with

Integra Realty

Resources

$4 ,10 0, 00 0 $ 3, 600 ,00 0 -12.2% Office space; white lot; add'l

parking


6 - 820 Sie rr a Vista 162-15-501-

013/014/015/019

1.4 Morgan Grace $7,200,000 $7,010,000 -2.6% Platinum lot corner; add'l

parking, storage and freightmarshaling areas

4/10/12 4/16/12 $0 N o additional costs

32 Swenson 162-15-501-009 0.3 Heidi Meidenbauer

with Lubawy &

Associates

$1,120,000 $350,395 -68.7% Platinum lot; improved access

to Swenson Road; add'l

parking, storage & freight

marshaling area


2/560/594 Sierra Vista 162-15-101-

024/025/026

4.85 Keith Harper $15,850,000 $15,010,327 -5.3% Bronze lot; add'l parking and

space for outdoor exhibits

and/or expansion


0 & 650 Sierra Vista 162-15-101-022/027 5.31 Valuation

Consultants

$21,615,000 $21,000,000 -2.8% Bronze Lot; add'l parking and

space for outdoor exhibits

and/or expansion

10/8/13 10/15/13 $150,664 Apartment tenant relocation costs a

management fees net of operating r

from rental income.

iera, 2901 LV Blvd. 162-09-703-001 26.36 Tio DiFederico $161,600,000 $155,000,000 -4.1% Space for LVCC e xpansion and

outdoor exhibits; access to

Strip frontage

2/20/15 2/20/15 $32,490,447 Contributions to Business Closure Es

($27M); Insurance; Morgan Stanley a

services; legal fees; utilities/mainten

through June 2015.

6 Sierra Vista 162-15-101-017 Cell

Tower

Valbridge Property

Advisors

$300,000 $300,000 0.0% Cell tower; Bronze Lot 9/8/15 9/28/15 $0 No additional costs

tal 39.15 $214,185,000 $204,070,722 -4.7% $32,641,111

Other Costs Associated with Acquisitio

(excludes demolition and site improveme


LAND ACQUISITION SUMMARY July 2006 to March 2016

LVCC-LandAcquisitionSummary Ju


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Section 6

Oversight and Governance of the


The Southern Nevada Tourism Infrastructure Committee requested background information and relevantlaws and regulations governing the Las Vegas Convention and Visitors Authority. This section includes asummary of the LVCVA planned oversight structure for the Las Vegas Convention Center District.


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Oversight and Governance

March 2016

LVCVA Board of Directors

The existing LVCVA Board of Directors and the LVCCD sub-committee structure provides

appropriate and responsible oversight. LVCVA’s 14-member governing body (Board of

Direc tors) is comprised of diverse representatives, reflec ting expertise in both public and

private sectors. The Board is charged by statute with oversight of all LVCVA activities.

Las Vegas Convention Center District (LVCCD) Committee The Board established the LVCCD sub-committee to provide staff direction and oversee

the scope of work proposed. The sub-committee will be instrumental in providing

recommendations and assurances to the full board regarding decisions and planning for

the LVCC D.

Audit Committee The LVCVA has an Audit Committee comprised of board members designated as

financial experts in conformance with general standards of the GFOA and Sarbanes-

Oxley. The Audit Committee can provide similar duties as the CCSD Bond Oversight

Committee.

Third-Party Oversight

Additional planned steps include the following:

1) A new Construction Advisory Group will be c reated and members appointedby the LVCVA including myself as President/CEO, the LVCVA’s Owner’s Rep,one (1) LVCVA Hotel Board member, and a selection of local resort staff

representatives who are construction experts.

2) A third-party Construction Auditing Firm will be hired to provide audits of all

construction payments.

3) Financial Advisors and Bond Counsel will review and advise on all LVCVA bondsales as standard operating procedure.

4) Bond Audits: Compliant bond covenants and intended use of the bondproceeds are audited annually by our independent external auditors and are

subjec t to IRS audits at any time.


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Section 7


Board of Directors Representation and Appointment

The Southern Nevada Tourism Infrastructure Committee requested information about the law pertainingto the composition of the LVCVA Board of Directors. This section contains the relevant portion of NevadaRevised Statutes 244A that governs board membership.


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Board Member Representation and Appointment

March 2016

Any changes to the LVCVA Board of Direc tors requires legislative ac tion. The LVCVABoard of Direc tors currently consists of 14 members as established by Nevada Revised

Statutes § 244A.603 (2011). The c urrent statute does not require the Chair of the LVCVA

Board of Directors to be an elected official. LVCVA Board members are selected as

follows in accordance with NRS § 244A.603:

1. In any county whose population is 700,000 or more…

(a) Two members by the board of county commissioners from their own number.

(b) Two members by the governing body of the incorporated city with the largest

population in the county from their own number.

(c) One member by the governing body of the incorporated c ity with the second

largest population in the county from their own number.(d) One member by the governing body of the incorporated city with the third

largest population in the county from their own number.

(e) One member by the governing body of the incorporated city with the smallest

population in the county from their own number.

(f) One member by the governing body of one of the other incorporated cities in

the county from their own number.

(g) Six members to be appointed by the members selected pursuant to

paragraphs (a) to (f), inclusive, of which:

(1) Three members must be selected from a list of nominees submitted by

the chamber of commerce of the incorporated city with the largest

population in the c ounty. If the nominees so listed are unsatisfac tory to themembers making the selection, they may, until satisfied, request additional

lists of nominees. The members appointed pursuant to this subparagraph

must be selec ted as follows:

(I) Two members who are representatives of tourism, at least one of

whom must be a representative of the resort hotel business; and

(II) One member who is a representative of other commercial

interests or interests related to tourism.

(2) Three members must be selected from a list of nominees submitted by

the assoc iation of gaming establishments whose membership in the county

collectively paid the most gross revenue fees to the State pursuant to NRS

463.370 in the preceding year. If the nominees so listed are unsatisfactory

to the members making the selection, they may, until satisfied, requestadditional lists of nominees. The members selected pursuant to this

subparagraph must be representatives of the resort hotel business, at least

one of whom is engaged in that business in the central business district of

the incorporated city with the largest population in the c ounty.

2. If there is more than one incorporated city in the county that is eligible to appoint the

member provided in paragraph (f) of subsection 1, the board of county commissioners


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shall facilitate a biennial rotation of the authority to appoint that member among those

cities.

3. Any vacancy occurring on a county fair and recreation board must be filled by the

authority entitled to appoint the member whose position is vacant.

4. After the initial appointments of members appointed pursuant to paragraph (g) ofsubsection 1, all members must be appointed for 2-year terms. If any such member

ceases to be engaged in the business sector which he or she was appointed to represent,

he or she ceases to be a member, and another person engaged in that business must

be appointed to fill the unexpired term. Any such member may succeed himself or

herself.

5. The term of the member appointed pursuant to paragraph (f) of subsec tion 1 is 2 years,

commencing on July 1 of each odd-numbered year.

6. The terms of members appointed pursuant to paragraphs (a) to (e), inclusive, of

subsection 1 are coterminous with their terms of office. Any such member may succeed

himself or herself.

Any proposed changes to the LVCVA board representation should consider the

impacts on the organization’s ability to access the tax-exempt municipal bond market.

On February 22, 2016, the Internal Revenue Service (IRS) published new proposed

regulations in the Federal Register providing guidance as to the definition of a “political

subdivision” for purposes of tax-exempt bonds. The proposed requirements could make

any substantial change to our Board of Directors problematic for any future issuance of

tax exempt bonds, should those changes conflict with IRS definition of a political

subdivision. Public comments on the Proposed Regulations may be submitted until May

23, 2016. A public hearing will be held on J une 6, 2016.


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Section 8

Summary of Convention Center Renovation Projects

The Southern Nevada Tourism Infrastructure Committee requested information on comparableconvention center renovation project costs. This section contains a list of recent projects that includescosts and a summary of the work done. The committee also requested information about the impacts ofconstruction projects on convention centers operations. A summary of those impacts for three comparableconvention centers is contained in this section, including how the centers mitigated construction

disruptions and a listing of shows that relocated because of construction activity.


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Summary of Recent Convention Center Renovation Projects

Below is a list of recent renovation projects at selected convention centers. Although some projects included building additional space, they primarily involved renovations of existing facilities and infrastructure.

Recent Convention Center Renovation Projects

Facility Status Construction Period Project Cost

Jacob K. Javits Convention Center, New York, NY Complete 2009 to 2013 $463 million

The renovation and expansion project added 40,000 square feet of exhibition space and 60,000 square feet ofsupport space. The renovation included roof repair and replacement, replacement of rooftop climate control units,updated interior lighting, and upgraded life safety and security systems.Operations Impact: Some areas of the center were taken out of service during the renovation. The newly addedexpansion enabled the center to remain open and fully operational and maintain the amount of exhibition space inservice at all times.

Orange County Convention Center, Orlando, FL Ongoing 2012 to 2016 $187 million

The largest renovation project in the venue’s history is taking place primarily within the center’s 4-million-square-foot West Building. The plan includes both aesthetics and life safety. Examples of improvements include curtainwalls, lighting and utility upgrades, restroom renovations, and fire alarm systems. Additionally, an existing exhibithall will be retrofitted to become flexible ballroom space.Operations Impact: The convention center is remaining open during the renovation, but some small areas, such as pedestrian walkways, were temporarily closed during the project.

Miami Beach Convention Center, Miami Beach, FL Ongoing 2015 to 2018 $515 million

The expansion and renovation project will add 200,000 square feet to the facility, including a 60,000-square-footgrand ballroom, 59,000 square feet of breakout meeting spaces, 806 on-site rooftop parking spaces and anadditional 12 acres of surrounding parks and landscaped areas.Operations Impact: At least two out of the four exhibit halls will remain operational throughout most of therenovation process. There will be periods when the entire building will be closed due to heavy construction and

demolition.Cobo Center, Detroit, MI Complete 2010 to 2015 $279 million

The project included transforming an arena into a 40,000-square-foot ballroom, building a three-story glass atrium,upgrading environmental, communications and fire protection systems, increasing available parking, andreconfiguring meeting and breakout room spaces.Operations Impact: To avoid losing business by closing during construction, the project was completed in small pieces over a longer period so it could remain open. Exhibit halls were never closed. Some meeting room sectionswere closed in tandem.

1 http://esd.ny.gov/Subsidiaries_Projects/CCDC/Data/GPPFinal031909a.pdf; https://www.javitscenter.com/media/4435/jkjcc-renovation-11-12-13-2.pdf2 https://www.occc.net/pdf/Info_FacilityFacts.pdf; http://www.occc.net/pdf/Info_CIPFactSheet.pdf;http://www.occc.net/global/press/CIP_details.asp?page=pressreleases&ID=102610523 http://mbccfuture.com/4 http://cobocenter.s3.amazonaws.com/doc/Cobo_construction_fact_sheet-FINAL11-14%5b2%5d.pdf; https://www.cobocenter.com/about_us/renovation_update;

Patrick Bero, CEO/CFO Detroit Regional Convention Facility Authority.


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Convention Center Construction Impacts

When convention centers undergo extensive expansion or renovation projects, they must account for potential

business disruptions caused by transforming major portions of their facilities into construction zones. Toaccommodate show customers, convention centers can adjust construction schedules, offer rental discounts and takeother steps to maintain their business commitments. While these strategies can help keep shows on the schedule,they do not guarantee that shows won’t relocate on either a temporary or permanent basis.

Below is a summary of experiences at several large convention centers during recent construction projects. Theinformation is based on contacts with individual convention facilities and research of publicly available information.

Moscone CenterSan Francisco, CaliforniaRenovation Project (construction period: August 2010 to June 2012)

The renovation project enhanced Moscone Center’s wireless connectivity, upgraded the HVAC system, andimproved aesthetics of the building with fresh paint reminiscent of the Golden Gate Bridge. In addition, therenovation upgraded support spaces and made positive sustainability initiatives with organic, local food vendors.

Construction Impacts

Renovation construction was scheduled on a start-and-stop basis around booked shows so as not to create adisturbance. Vendors were virtually unaffected and no discounts were necessary to appease clients, according to Naina Ayya, communications manager for Moscone Center.

Show Impacts

WonderCon – One of the largest comic book conventions in the nation with about 60,000 attendees, WonderConmoved out of Moscone Center in 2012 during the renovation project after nine years at that location. Show

spokesman David Glanzer attributed the move to construction: “… with all of the finish work which still needs todone — there just wasn’t going to be enough space available for us inside of that building to properly presentWonderCon. Not this year, anyway.”1

WonderCon moved to Anaheim Convention Center, where it remained through 2015. During that period, showorganizers indicated a desire to return to Moscone but could not find appropriate booking dates. 2 Coincidentally,construction at Anaheim Convention Center prompted the show to move to Los Angeles Convention Center in2016, though the show will return to Anaheim in 2017.3

Expansion Project (construction period: November 2014 to 2018)The $500 million Moscone Center expansion will add 525,000 square feet of new and repurposed space (305,000of which is sellable exhibit hall, meeting room and ballroom space).


The Moscone Center intends to keep the convention center functional during construction. The facility has providedclients rent reductions for loss of exhibit space and additional move days for the loss of loading dock availability,according to Ayya. Some scheduled shows were forced to book exhibits at other locations due to the loss of programmable space. Despite the loss of some business, the tradeshow relocations are temporary as they have pledged to return to Moscone Center in 2018 or for their next scheduled show, she said.

1 Huffington Post, “Should the Bay Area Be Concerned That WonderCon Is Foresaking Frisco for Anaheim?” http://www.huffingtonpost.com/jim-hill/leaked-plans-for-universa_b_1178600.html, March 25, 2012.2 Publishers Weekly, “WonderCon Still Hoping for Return to Bay Area,” http://www.publishersweekly.com/pw/by-topic/industry-news/comics/article/60172-wondercon-still-hoping-for-return-to-bay-area.html, November 26, 2013.3

Los Angeles Times, “WonderCon will go back to Anaheim in 2017, but L.A. wants it back for 2019,”http://www.latimes.com/entertainment/herocomplex/la-et-hc-wondercon-back-anaheim-in-2017-20160325-story.html, March 25, 2016.


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Show Impacts VMworld US – Because of construction, the show that attracts about 25,000 data center professionals moved fromMoscone Center to Mandalay Bay Convention Center in 2016.4 The location for the 2017 show has not beenannounced.

American Geophysical Union – One of the largest earth and space science meetings in the world is moving to NewOrleans in 2017 and Washington, D.C., in 2018 due to ongoing construction.5 The annual meeting, which drawsmore than 25,000 attendees, plans to return to Moscone in 2019.

SFMarket – Formerly known as the San Francisco International Gift Fair, the show announced in January 2016 thatit was moving its summer expo to the nearby San Mateo Event Center because of construction at Moscone Center.6 The show has since been postponed, and no rescheduled dates or locations have been announced. The show typicallyattracts about 10,000 attendees between its two annual shows.

Miami Beach Convention CenterMiami Beach, FloridaRenovation Project (construction period: December 2015 to 2018)The $165 million renovation of Miami Beach Convention Center will add a new 60,000-square-foot ballroom,rooftop parking, and 12 additional acres of surrounding parks.


The facility is operating at half capacity, with two of four convention halls being closed for construction. Theconvention center has lost shows because of the construction inconvenience, and shows that stayed had to scale back in size in order to adapt to the building limitations. Director of Operations Angelo Grande was unable to provide specifics on lost business, but he did indicate the renovation process is posing challenges.

Show Impacts

Miami International Boat Show – The show and its more than 100,000 attendees moved to Miami MarineStadium for its 2016 and 2017 events because of construction.7 A proposal to renovate the aging Miami MarineStadium is being considered to make the venue the permanent location for the boat show.8

Original Miami Beach Antique Show – Billed as the world’s largest indoor antiques show with more than 20,000attendees and 1,000 dealers, the event relocated its 2017 show to the Miami-Dade County Fair Expo Center.Show organizers are in discussions to return to Miami Beach Convention Center after construction is complete in2018.9

Cruise Shipping Miami – Renovation construction prompted the conference of the cruise line industry move 30miles up the coast to the Fort Lauderdale-Broward County Convention Center. The annual show attracts morethan 800 exhibitors and 11,000 attendees. The show signed a contract to remain in Fort Lauderdale through 2018,

with an option for 2019.10

4 Las Vegas Convention and Visitors Authority, http://sntic.org/meeting/07/staff/SNTIC%20FEB2016MemoKeyInfo.pdf 5 American Geophysical Union, https://fromtheprow.agu.org/agu-announces-new-locations-for-the-2017-and-2018-fall-meetings/6 Gift Shop Magazine, “SF Market moves to San Mateo Event Center for August edition,” http://www.giftshopmag.com/press_release/2016/01/sf-market-moves-to-san-mateo-event-center-for-august-edition/, January 22, 2016.7 Miami Herald, “Miami International Boat Show moving to Marine Stadium; renovations closer,”http://www.miamiherald.com/news/local/community/miami-dade/article3791045.html, November 12, 2014.8 Miami Herald, “As Miami boat show launches at Miami Marine Stadium, historic structure languishes,”http://www.miamiherald.com/news/local/community/miami-dade/article60021556.html, February 12, 2016.9 Original Miami Antique Show, http://www.originalmiamibeachantiqueshow.com/show/about-the-show/10

Florida Sun Sentinel, “Cruise Shipping Miami moving to Fort Lauderdale in 2016,” http://www.sun-sentinel.com/business/tourism/fl-cruise-shipping-fort-lauderdale-move-20150203-story.html, February 3, 2015.


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International Engineered Fabrics Conference & Exhibition – The IDEA16 conference of about 7,000 attendeesmoved to the Boston Convention and Exhibition Center for its 2016 event, citing the renovation at Miami BeachConvention Center.11

Graphics of Americas Expo and Conference – One of the graphic communications industry’s largest annualevents, the show organized by the Printing Association of Florida moved its 2017 show from Miami Beach to FortLauderdale. About 7,500 people attend each year. The GOA show will co-locate its 2017 event with the NationalBusiness Media Show, which typically hosts a handful of annual events around the country.

Cobo CenterDetroit, MichiganRenovation Project (construction period: September 2010 to June 2015)The Cobo Center underwent a $279 million renovation that added an atrium, a grand ballroom, two additional ballrooms and a 45,000-square-foot outdoor terrace.


Cobo Center remained open during the renovation and scheduled construction in small sections over a long periodof time to minimize guest inconvenience. Construction moved swiftly during the relatively open spring andsummer months; however, during the winter, which included the North American International Auto Show,appeasements were provided because of construction-related disruptions.

Over the course of one year, Detroit Regional Convention Facility Authority CEO Patrick Bero estimated four tofive partial refunds were provided to clients. Bero also noted that significant pricing discounts were provided toentice formerly hosted conventions to return to the renovated Cobo Center after many years of absence. Thesediscounts were provided to recapture market share lost from prior years, but no shows were lost as a result of therenovation.

Show Impacts While Cobo Center did not lose any shows during the construction period, it should be noted that the facilityhosted just 35 major events when construction began in 2010.12

11 Association of Nonwoven Fabrics Industry, http://www.inda.org/inda-announces-idea-will-move-to-boston-convention-exhibition-center-for-2016/12

Trade Show Executive, “Record Year for Event Days Predicted at Detroit’s Cobo Center,” http://www.tradeshowexecutive.com/archive/industry-news/record-year-event-days-predicted-detroits-cobo-center, February 9, 2016.


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Section 9

Summary of Convention Center Expansion Projects

The Southern Nevada Tourism Infrastructure Committee requested information about recent and proposedexpansion projects of convention centers in the United States. This section contains an update to the list provided at the February committee meeting that includes the total sellable space and total overall spaceadded to the facilities by the expansions.


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Summary of Recent Convention Center Expansion Projects

Las Vegas is far from the only city considering a convention center expansion. A list of major ongoing orrecently completed projects is included below, along with details of the project and costs. Added sellable

space figures consist of new exhibit, meeting, and ballroom square footage.

Project details were collected from a variety of sources, including convention authorities, public agencies,and news reports.

Recent Convention Center Expansion Projects

Additional Space Facility Status Project Cost Sellable (SF) Total (SF)

Las Vegas Convention Center, Las Vegas, NV Proposed $1.4 billion 950,000 2.0 million

The two-phase project would begin with expansion of the existing footprint by 1.4 million square feet. The expansion willserve as “swing space” to accommodate existing shows while current halls are renovated and receive additional meeting space.

Music City Center, Nashville, TN1 Completed $623 million 1.2 million 2.1 million

Opened in 2013, the Music City Center was three times larger than existing convention centers in the region. Construction ofthe facility was funded by a combination of tourism-related taxes and fees.

Jacob K. Javits Convention Center, New York, NY2 Proposed $1 billion 722,000 1.2 million

Announced by New York Governor Andrew Cuomo in January 2016, the project would expand the convention center by 1.2million square feet, increasing its overall size from 2.1 million square feet to 3.3 million square feet.

Boston Convention & Exhibition Center, Boston, MA3 Proposed $1 billion 510,000 N/A*

The expansion would add 1.2 million square feet to the 2 million-square-foot center. The state legislature approved project bonds in 2014, however, Massachusetts Governor Charlie Baker halted the project in 2015, citing concerns over costs.

Washington State Convention Center, Seattle, WA4 Proposed $1.4 billion 430,000 1.26 million

Proposed in July 2015, the expansion project would add 1.26 million square feet in overall space to the convention center. The

project includes co-development of residential units and commercial space.San Diego Convention Center, San Diego, CA5 Proposed $549 million 380,000 N/A*

The expansion has been stalled due to legal challenges over site location and a hotel tax funding mechanism. In February 2016,a competing convention expansion was announced as part of a proposal to build a new downtown football stadium.

Los Angeles Convention Center, Los Angeles, CA6 Proposed $470 million 373,200 N/A*

The planned expansion would increase available space to 1.2 million square feet. The city’s economic development committeerecently recommended pursuing both the publicly-funded expansion as well as a public-private partnership plan to create amixed-use development around the convention center campus.

Moscone Center, San Francisco, CA7 Construction $500 million 300,000 300,000

Construction on the expansion project began in May 2015 and is scheduled for completion in late 2018. When finished, theexpanded convention center will have more than 1 million square feet of available exhibit space.

Henry B. Gonzalez Convention Center, San Antonio, TX8 Construction $325 million 270,000 270,000

Under construction since February 2013, the expansion is on schedule for completion in late 2016. The project will increase theconvention center’s size and features a wraparound balcony overlooking the city’s famous River Walk.

Kentucky International Convention Center, Louisville, KY9 Planned $180 million 240,000 0

Construction is scheduled to start in summer 2016, and the facility will remain closed through the end of the project in 2018.The expansion will add sellable space within the existing footprint of the current building.

Anaheim Convention Center, Anaheim, CA10 Construction $190 million 200,000 200,000

Construction began in April 2015 to add a two-level convention expansion that will push total convention space to more than 1million square feet. The project includes a 1,350-space parking garage. Completion is expected in summer 2017.

* Unavailable due to preliminary nature of project.


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Convention Center Project Sources

1 Nashville

http://www.nashvillemusiccitycenter.com/plannershttp://nashvillecitypaper.com/content/city-news/council-approves-funding-convention-center 2 New Yorkhttps://www.governor.ny.gov/news/7th-proposal-governor-cuomos-2016-agenda-dramatic-expansion-jacob-k-javits-center-attract-more 3 Bostonhttps://www.bostonglobe.com/business/2015/04/29/baker-administration-halts-convention-center-expansion/2VShiTSm1WWiYdTeSOR3xJ/story.html http://visitsandiego.com/sites/default/files/Expansion%20Market%20Feasibility%20Analysis%20San%20Diego%20%20_9_2_2015%20-REVISED.pdf 4 Seattlehttp://www.wsccaddition.com/ http://www.wscc.com/sites/default/files/find-it/files/WSCC%20Addition%20Draft%20EIS_Appendices.pdf http://www.wscc.com/sites/default/files/find-it/files/WSCC%20Addition%20Draft%20EIS.pdf 5 San Diegohttp://www.10news.com/sports/chargers-focusing-efforts-on-downtown-stadium-022316http://www.voiceofsandiego.org/topics/land-use/everything-you-need-to-know-about-where-the-convention-center-expansion-stands/ 6 Los Angeleshttp://www.lacclink.com/assets/doc/Expansion-Modernization-FAQ.pdf

http://www.latimes.com/opinion/editorials/la-ed-convention-center-20160221-story.html http://la.curbed.com/2016/2/16/11028502/los-angeles-convention-center-redesign-public-private-partnership 7 San Franciscohttp://visitsandiego.com/sites/default/files/Expansion%20Market%20Feasibility%20Analysis%20San%20Diego%20%20_9_2_2015%20-REVISED.pdfhttp://www.ktvu.com/news/4669886-story 8 San Antonio

http://populous.com/project/henry-b-gonzalez-convention-center/http://www.expressnews.com/business/local/article/Convention-Center-costs-remain-under-budget-6827797.php 9 Louisvillehttps://kyconvention.org/renovation.html 10 Anaheimhttp://www.venuestoday.com/news/detail/anaheim-convention-center-undergoes-expansion-42815http://www.tsnn.com/news-blogs/anaheim-convention-center-kicks-7th-expansion-project

http://www.nashvillemusiccitycenter.com/plannershttps://www.governor.ny.gov/news/7th-proposal-governor-cuomos-2016-agenda-dramatic-expansion-jacob-k-javits-center-attract-morehttps://www.governor.ny.gov/news/7th-proposal-governor-cuomos-2016-agenda-dramatic-expansion-jacob-k-javits-center-attract-morehttps://www.governor.ny.gov/news/7th-proposal-governor-cuomos-2016-agenda-dramatic-expansion-jacob-k-javits-center-attract-morehttps://www.bostonglobe.com/business/2015/04/29/baker-administration-halts-convention-center-expansion/2VShiTSm1WWiYdTeSOR3xJ/story.htmlhttps://www.bostonglobe.com/business/2015/04/29/baker-administration-halts-convention-center-expansion/2VShiTSm1WWiYdTeSOR3xJ/story.htmlhttps://www.bostonglobe.com/business/2015/04/29/baker-administration-halts-convention-center-expansion/2VShiTSm1WWiYdTeSOR3xJ/story.htmlhttp://visitsandiego.com/sites/default/files/Expansion%20Market%20Feasibility%20Analysis%20San%20Diego%20%20_9_2_2015%20-REVISED.pdfhttp://visitsandiego.com/sites/default/files/Expansion%20Market%20Feasibility%20Analysis%20San%20Diego%20%20_9_2_2015%20-REVISED.pdfhttp://visitsandiego.com/sites/default/files/Expansion%20Market%20Feasibility%20Analysis%20San%20Diego%20%20_9_2_2015%20-REVISED.pdfhttp://www.wsccaddition.com/http://www.wsccaddition.com/http://www.wscc.com/sites/default/files/find-it/files/WSCC%20Addition%20Draft%20EIS_Appendices.pdfhttp://www.wscc.com/sites/default/files/find-it/files/WSCC%20Addition%20Draft%20EIS_Appendices.pdfhttp://www.wscc.com/sites/default/files/find-it/files/WSCC%20Addition%20Draft%20EIS.pdfhttp://www.wscc.com/sites/default/files/find-it/files/WSCC%20Addition%20Draft%20EIS.pdfhttp://www.10news.com/sports/chargers-focusing-efforts-on-downtown-stadium-022316http://www.voiceofsandiego.org/topics/land-use/everything-you-need-to-know-about-where-the-convention-center-expansion-stands/http://www.voiceofsandiego.org/topics/land-use/everything-you-need-to-know-about-where-the-convention-center-expansion-stands/http://www.voiceofsandiego.org/topics/land-use/everything-you-need-to-know-about-where-the-convention-center-expansion-stands/http://www.lacclink.com/assets/doc/Expansion-Modernization-FAQ.pdfhttp://www.latimes.com/opinion/editorials/la-ed-convention-center-20160221-story.htmlhttp://www.latimes.com/opinion/editorials/la-ed-convention-center-20160221-story.htmlhttp://la.curbed.com/2016/2/16/11028502/los-angeles-convention-center-redesign-public-private-partnershiphttp://la.curbed.com/2016/2/16/11028502/los-angeles-convention-center-redesign-public-private-partnershiphttp://visitsandiego.com/sites/default/files/Expansion%20Market%20Feasibility%20Analysis%20San%20Diego%20%20_9_2_2015%20-REVISED.pdfhttp://visitsandiego.com/sites/default/files/Expansion%20Market%20Feasibility%20Analysis%20San%20Diego%20%20_9_2_2015%20-REVISED.pdfhttp://www.ktvu.com/news/4669886-storyhttp://www.ktvu.com/news/4669886-storyhttp://populous.com/project/henry-b-gonzalez-convention-center/http://www.expressnews.com/business/local/article/Convention-Center-costs-remain-under-budget-6827797.phphttp://www.expressnews.com/business/local/article/Convention-Center-costs-remain-under-budget-6827797.phphttps://kyconvention.org/renovation.htmlhttps://kyconvention.org/renovation.htmlhttp://www.venuestoday.com/news/detail/anaheim-convention-center-undergoes-expansion-42815http://www.tsnn.com/news-blogs/anaheim-convention-center-kicks-7th-expansion-projecthttp://www.tsnn.com/news-blogs/anaheim-convention-center-kicks-7th-expansion-projecthttp://www.tsnn.com/news-blogs/anaheim-convention-center-kicks-7th-expansion-projecthttp://www.venuestoday.com/news/detail/anaheim-convention-center-undergoes-expansion-42815https://kyconvention.org/renovation.htmlhttp://www.expressnews.com/business/local/article/Convention-Center-costs-remain-under-budget-6827797.phphttp://populous.com/project/henry-b-gonzalez-convention-center/http://www.ktvu.com/news/4669886-storyhttp://visitsandiego.com/sites/default/files/Expansion%20Market%20Feasibility%20Analysis%20San%20Diego%20%20_9_2_2015%20-REVISED.pdfhttp://visitsandiego.com/sites/default/files/Expansion%20Market%20Feasibility%20Analysis%20San%20Diego%20%20_9_2_2015%20-REVISED.pdfhttp://la.curbed.com/2016/2/16/11028502/los-angeles-convention-center-redesign-public-private-partnershiphttp://www.latimes.com/opinion/editorials/la-ed-convention-center-20160221-story.htmlhttp://www.lacclink.com/assets/doc/Expansion-Modernization-FAQ.pdfhttp://www.voiceofsandiego.org/topics/land-use/everything-you-need-to-know-about-where-the-convention-center-expansion-stands/http://www.voiceofsandiego.org/topics/land-use/everything-you-need-to-know-about-where-the-convention-center-expansion-stands/http://www.10news.com/sports/chargers-focusing-efforts-on-downtown-stadium-022316http://www.wscc.com/sites/default/files/find-it/files/WSCC%20Addition%20Draft%20EIS.pdfhttp://www.wscc.com/sites/default/files/find-it/files/WSCC%20Addition%20Draft%20EIS_Appendices.pdfhttp://www.wsccaddition.com/http://visitsandiego.com/sites/default/files/Expansion%20Market%20Feasibility%20Analysis%20San%20Diego%20%20_9_2_2015%20-REVISED.pdfhttp://visitsandiego.com/sites/default/files/Expansion%20Market%20Feasibility%20Analysis%20San%20Diego%20%20_9_2_2015%20-REVISED.pdfhttps://www.bostonglobe.com/business/2015/04/29/baker-administration-halts-convention-center-expansion/2VShiTSm1WWiYdTeSOR3xJ/story.htmlhttps://www.bostonglobe.com/business/2015/04/29/baker-administration-halts-convention-center-expansion/2VShiTSm1WWiYdTeSOR3xJ/story.htmlhttps://www.governor.ny.gov/news/7th-proposal-governor-cuomos-2016-agenda-dramatic-expansion-jacob-k-javits-center-attract-morehttps://www.governor.ny.gov/news/7th-proposal-governor-cuomos-2016-agenda-dramatic-expansion-jacob-k-javits-center-attract-morehttp://www.nashvillemusiccitycenter.com/planners


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Section 10

Las Vegas Convention Center District Cost Estimates

Compared with Mandalay Bay Expansion

The Southern Nevada Tourism Infrastructure Committee requested a comparison of the estimated cost forthe proposed Las Vegas Convention Center District and the cost of the recent expansion of the MandalayBay Convention Center. This section includes information provided by MGM Resorts Internationalregarding its project and associated costs.


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Comparative Costs of Las Vegas Convention Center District and

Mandalay Bay Convention Center Expansion

Summary of Las Vegas Convention Center District Estimated Costs

Additional Space Renovated Space Total Cost Cost Per SF

Phase Two 1,440,000 SF $860 million $600/SFPhase Three 575,000 SF 3,200,000 SF $540 million $143/SF

Project Total 2,015,000 SF 3,200,000 SF $1.4 billion $268/SFSource: Las Vegas Convention and Visitors Authority

Summary of Mandalay Bay Convention Center Expansion Costs

Additional Space Total Cost Cost Per SF

Mandalay Bay Expansion 350,000 SF $70 million $200/SFSource: MGM Resorts International

Notes on the Mandalay Bay Convention Center Expansion provided by MGM Resorts International:

The Mandalay Bay expansion was built in a cost-effective manner not likely possible on a public

job with public bidding rules and requirements.

The Mandalay Bay project was a facility expansion, rather than a new build as proposed in Phase

One of the Las Vegas Convention Center District.

The cost-per-square-foot difference is attributable to the Mandalay Bay expansion being an

extension of the existing trade show hall. The project consisted mainly of added exhibit square

footage, pre-function space, supporting docks and restrooms. It did not involve ground-up

construction as proposed with the Las Vegas Convention Center District, which includes full

design, exhibit space, meeting rooms, support space (kitchens, storage, offices, etc.), food and

beverage venues, pre-function space, and all supporting infrastructure.


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Section 11

Las Vegas Convention and Visitors Authority Pro Forma Financial Statement

The Southern Nevada Tourism Infrastructure Committee requested an overview of the Las VegasConvention and Visitors Authority finances. This section contains the financial summaries for theLVCVA under both scenarios A and B as presented in the Las Vegas Convention Center District FinancialPlanning Document. Committee staff is actively reviewing the financial model.


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Section 12

Facility Repair and Maintenance Budget

The Southern Nevada Tourism Infrastructure Committee requested information about maintenance costsfor the Las Vegas Convention Center. This section includes a list of actual expenditures for facility repairand maintenance in fiscal year 2015 and budgeted expenditures in fiscal year 2016.

Total budgeted expenditures for each facility in FY2016 are as follows:

Las Vegas Convention Center Cashman Center$1,486,600 $229,200


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1

LAS VEGAS CONVENTION AND VISITORS AUTHORITYFacility Repair & Maintenance

Prepared March 2016

To help ensure the useful life of the fac ilities and equipment is fully realized, the LVCVA uses repair

and maintenance expenditure accounts within the General Fund. These expenditures represent

routine preventative maintenance and repair activities. Investments have stayed relatively

consistent year-to-year and average approximately $2MM a year as maintenance contracts andoperating repairs are performed to sustain the facilities assets during their general life spans. Over

the last five years, R&M has represented 18% of the Operations Division annual budget, excluding

personnel costs. R&M amounts do not include items for large capital purchases, renovations and

replacements which are budgeted in the C apital Fund and extend the useful life of fac ilities.

Ac tual R&M expenditures totaled $1.9 million in FY 2015. R&M is budgeted slightly lower for FY

2016, at $1.7 million. Should actual R&M requirements exceed the budgeted amounts,

management may transfer appropriations from other operating accounts within the overall

LVCVA budget.

Expenditures

Account Account Name FY15 Actual FY16Budget

LVCC - ITD R & M Computers Non-capital repairs of all computerequipment; including approximately 450PC’s, laptops, and Mac’s.

4,735 15,000

LVCC - CLIENTSERVICES

R & M Equipment Repair & maintenance of servicesequipment. Includes vacuums, carpetcleaners, parking lot sweepers, etc.

14,127 20,500

LVCC -ENGINEERING

R & M HVAC Repair & maintenance of heating andcooling equipment; including over 140 airhandlers and over 200 air conditioners.Cooling tower chemicals, air filterpurchase and installation, and routinemaintenance of heating and coolingequipment.

260,365 248,000

LVCC -ENGINEERING

R & M Electrical Repair & maintenance of electrical andlighting equipment. Power panels, lightswitches, etc.

212,806 160,100

LVCC -ENGINEERING

R & MMechanics/Fleet

Repair & maintenance of equipment usedin fleet and over 100 sets of folding walls,as well as freight doors. Maintenance of20 vehicles, 130 service carts, plusforklifts, sweepers, lifts, trailers and other

rolling stock.

273,165 152,000

LVCC -ENGINEERING

R & M Plumbing Repair & maintenance of plumbingequipment, pipes, etc. Includes greasetrap cleanouts.

79,649 68,400

LVCC -ENGINEERING

R & MCarpenters/Painters

Repair & maintenance of carpentryprojects throughout the building, includingflooring and over 1,500 banks of doors.

234,705 189,000


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2

LVCC -

ENGINEERING

R & M Graphics Repair & maintenance of buildinggraphics equipment.

29,187 30,000

LVCC -

ENGINEERING

R & M FacilitySupport

Repair & maintenance of furniture andequipment installed in LVCVA offices andareas.

181 -

LVCC -ENGINEERING

R & MElevator/Escalator

Repair & maintenance of 23 elevatorsand 20 escalators. Includes maintenanceagreements on same.

385,399 433,700

LVCC -ENGINEERING

R & M BuildingEngineers

Repair & maintenance of generalbuilding. Includes walls, floors, windows,office areas and any other area/systemnot designated elsewhere.

99,310 75,000

LVCC -COMMUNICATIONS

R & M Audio/Video Repair and maintenance of audio/videoequipment (microphones, speakers, etc.).

9,784 21,000

LVCC -COMMUNICATIONS

R & M CableSystems

Repair and maintenance of cablesystems. Cable systems provide cabledrops to exhibitors.

23,013 3,700

LVCC -

COMMUNICATIONS

R & M Radio

Systems

Repair and maintenance of radio system

(over 350 units). Radio system is thehandheld communication system used bysecurity, engineering, etc.

10,705 13,000

LVCC - FIREPREVENTION

R & M Fire Systems Repair & maintenance of fire systems,including fire alarms, fire extinguishers &fire hoses.

42,237 57,200

CASHMAN- CLIENTSERVICES

R & M Equipment Repair & maintenance of servicesequipment. Includes vacuums, carpetcleaners, parking lot sweepers, etc.

6,105 5,200

CASHMAN-

ENGINEERING

R & M Cooling

Equipment

Repair & maintenance of cooling

equipment; including over 20 air handlersand over 25 air conditioners. Coolingtower chemicals and routinemaintenance.

39,651 41,900

CASHMAN-ENGINEERING

R & M ElectricalEquipment

Repair & maintenance of electricalequipment. Power panels, light switches,etc.

14,525 23,100

CASHMAN-ENGINEERING

R & M Equipment Repair & maintenance of equipment notspecifically listed elsewhere.

5,498 6,700

CASHMAN-ENGINEERING

R & M HeatingEquipment

Repair & maintenance of heatingequipment. Routine maintenance of heatburners.

80 1,500

CASHMAN-ENGINEERING

R & M LightingSystem

Repair & maintenance of lightingequipment.

25,671 18,200

CASHMAN-ENGINEERING

R & M PlumbingSystem

Repair & maintenance of plumbingequipment, pipes, etc. Includes greasetrap cleanouts.

20,996 14,800


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CASHMAN-ENGINEERING

R & M Theatre Repair & maintenance of theatre andtheatre equipment. Includes theatrelabor during performances.

15,940 15,800

CASHMAN-ENGINEERING

R & M MessageBoards

Repair and maintenance of messageboards, electronic signage andscoreboard at Cashman.

10,200 10,200

CASHMAN-ENGINEERING

R & M Doors Repair & maintenance of ten banks ofdoors, including public entrance/exitdoors. Also includes locks for samedoors.

8,068 4,000

CASHMAN-ENGINEERING

R & M GeneralBuilding

Repair & maintenance of generalbuilding. Includes walls, floors, windows,office areas and any other area/systemnot designated elsewhere.

55,908 73,800

CASHMAN-COMMUNICATIONS

R & M Audio/Video Repair and maintenance of audio/videoequipment (microphones, speakers, etc.).

3,239 2,000

CASHMAN-COMMUNICATIONS

R & M RadioSystems

Repair and maintenance of radio system.Radio system is the handheld

communication system used by security,engineering, etc.

3,000 3,000

CASHMAN-GROUNDS

R & M Equipment Repair & maintenance of groundsequipment at Cashman. Includesspecialized equipment used to maintainall baseball field.

9,385 9,000

1,897,635 1,715,800


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Section 13

Capital Assets and Major Capital Programs

The Southern Nevada Tourism Infrastructure Committee requested information about the Las VegasConvention and Visitors Authority’s capital assets and programs. This section contains a list of pre-construction expenditures on infrastructure for the Las Vegas Convention Center District as well as asummary of current capital assets, a history of capital investments and a recent 10-year history of capitalexpenditures.


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Capital Investment Supplemental Detail

“Pre-Construction” Costs - MPEP April 2016

The LVCC D Fina nc ia l Pla nning Doc um ent included a summary report: “10-Year History of LVCVA

Capital Investments in Fac ilities.” This information sheet provides additional cost break-outs for the

first line item of the report (“Cen tra l Restroom s, Data Cen ter, Ea rly Co nstruc t io n Moc k-Up s, & O the r

Pre -c o nstruc tion ”). The c ollective expenditures of just over $115MM were all related to the LVCVA’s

Master Plan Enhancement Program (MPEP). Several of the projec ts were bid jointly, resulting in a

combined cost presentation.

The MPEP planned for significant renovations and improvements to the Las Vegas Convention

Center (LVCC). Significant work began in 2006; however, the program was suspended in 2009 due

to the recession. Architec tural design and schematic drawings were substantially completed and

several early construction projec ts underway were completed. In total, approximately $142MM was

expended for MPEP-related programs. These expenditures were reported in our Comprehensive

Annual Financial Reports (CAFR’s) and audited for appropriate accounting and reporting

presentation in compliance with all regulatory standards. The following table presents a cost

breakdown for all major components of the MPEP:

Ce ntral Restroo m s, Da ta C ente r, Early C onstruc tion Mo c k- Ups, & Other Pre-c onstruc tion (MPEP):

$ 41.3 Architectural design and schematic drawings

26.8Construction/Project Management (CM/PM)(Pre-co nst ruc t ion serv ic es* ;c ont rac t a dm in; sch ed u le imp ac t c ont ro l; c han ge -orde r mi t iga t ion ; f ie ld

m on itor ing ; surveys; insp ec t ion s; test ing ; a s-bui lt c onfo rm a nc e; d oc c ontrol ; po st-co nst serv ic es)

25.6Utility Relocations & Installation: Convention Center Drive/Paradise/ Silver Lot

Storm Drains and Sewer programs to provide campus flood control

15.0 Central Restrooms; Data Command Center (DCC); Freight Doors

5.5 Design and Early Construction of Mock-up rooms N-258, N-260

0.5 Owner Controlled Insurance Program (OC IP)

0.5 Capitalized Bond Issuance Costs

0.3Cumulative multi-projec t fees for permits, inspections, bid advertising, signage, security,

construction auditors, and legal counsel

$ 115.5 Sub-total: Aggregated MPEP line item on capital history summary

MPEP p rojec ts p resente d a s individua l line item s on the Ca p ita l History Sum m a ry:

$ 17.5 Metro sub-station - Design/Build Construction Costs

2.4 Central Plant Upgrades and Chillers

1.7 Desert Inn Meeting Rooms Design and Pre-C onstruction*

1.5Utility Installations & Reloc ations: Freight Door 10/J oe W Brown/NV Power Substation

NV Energy Bac kup Feeder Line and SW Gas and Embarq data lines

2.1 DCC Telecom Upgrades / Avaya Phone System

0.8 North Lobby and Meeting Room Design and Pre-Construction*

$ 26.0 Sub-total: MPEP projects reported individually on capital history summary

$ 141.5 TOTAL MPEP

*Expe nd itures for pre-c o nstruc tion service s inc lud ed c o nstruc ta b i li ty rev iew s, sc he d uling , c o st-estim a ting;

sub -c ontrac t st ra t eg y de velop m ent , wo rk p la ns a nd p ro ject est ima t ing. Pre-c on struct ion wo rk wa s

und erwa y on seve ra l p ro jec ts tha t we re la te r susp end ed d ue to t he rec ession.


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1

L A S V E G A S C O N V E N T I O N A N D V I S I T O R S A U T H O R I T Y

C a p i t a l A s s e t s b y C a t e g o r y a n d H

i s t o r y o f M a j o r C a p i t a l P r o g r a m

s

M a r c h

2 0 1 6

T h e L V C V A h a s c o m p l e t e d s e v

e r a l e x p a n s i o n s a n d c a p i t a l i m p r o v e m e n t p r o g r a m s ( C I P ) s i n c e i t s i n c e p t i o n . B e l o w i s a s n a p s h o t o f t h e

L V C V A ' s c a p i t a l i z e d a s s e t s o v e r i t s h i s t o r y r e f l e c t i n g c u m u l a t i v e i n v e s t m e n t s i n e x p a n s i o n a n d c a p i t a l r e n o v a t i o n p r o g r a m s a s r e p o r t e d

i n o u r C o m p r e h e n s i v e A n n u a l

F i n a n c i a l S t a t e m e n t s . P l e a s e n o t e t h a t t h e t a b l e d o e s n o t r e f l e c t e x p e n d i t u r e s b y p e r i o d , r a t h e r i t

d e m o n s t r a t e s t h e c o n s i s t e n t g r o w t h i n t o t a l L V C V A a s s e t s a s a r e s u l t o f c o n t i n u o u s i n v e s t m e n t s t o t h e c a m p u s a n d f a c i l i t y . T h e L V C V A

u s e s c a p i t a l t h r e s h o l d a m o u n t s

s o t h a t o n l y m a t e r i a l e x p e n d i t u r e s a r e

r e c o r d e d i n c a p i t a l a s s e t s . A m o u n t s

o n t h i s t a b l e a r e s h o w n n e t o f

a d d i t i o n s , d i s p o s a l s , a n d i m p a i r m e n t s . A n a r r a t i v e h i g h l i g h t i n g m a j o r

p r o g r a m s f o l l o w s t h i s t a b l e .

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i f i c a n

t G o v e r n m e n

t A c c o u n

t i n g

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i n g

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d a r d s

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t D i c t a t e R e c o r d

i n g

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t a t i o n

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* C W I P : C o n s t r u c t i o n W o r k i n P r o g r e s s c a t e g o

r y i s u s e d f o r a s s e t s t h a t a r e n o t c o m p l e t e d a t t h e e n d o f a f i s c a l y e a r . T h e y a r e t h e n t r a n s f e r r e d t o t h e p r o p e r a s s e t c a t e g o r y w h e n c o m p l e t e d .

* * I n t a n g i b l e a s s e t s o f t h e L V C V A b e g a n t o b e

r e c o r d e d i n c o m p l i a n c e w i t h G A S B S t a t e m e n t N o . 5 1 ( A

c c o u n t a n d F i n a n c i a l R e p o r t i n g f o r I n t a n g i b l e A s s e t s ) f o

r p e r i o d s b e g i n n i n g i n F Y 2 0 1 0 .

* * * A s s e t a c q u i s i t i o n s p r i o r t o D e c e m b e r 1 9 7 0

w e r e r e c o r d e d a t i n d e p e n d e n t a p p r a i s e d v a l u e s . S u b s e

q u e n t t o D e c e m b e r 1 9 7 0 , a s s e t s a r e r e c o r d e d a t c o s t p

a i d a n d r e p a i r a n d m a i n t e n a n c e c o s t s w h i c h

d i d n o t i m p r o v e o r e x t e n d t h e l i f e o f t h e a s s e t w

e r e e x p e n s e d ( n o t r e c o r d e d a s c a p i t a l a s s e t s ) a s r e q u i r

e d b y a c c o u n t i n g s t a n d a r d s .

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B u i l d i n g s ,

O t h e r C a m p u s

I m p r o v e m e n t s & C W I P *

F u r n i t u r e &

E

q u i p m e n t

S a m

B o y d

S t a d i u m

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F i s c a l Y e a r

E n d

L a n d


42/155

2

H I S T O R I C A L S U M M A R Y - M A J O R

C I P :

L V C V A w a s e s t a b l i s h e d

i n J a n u a r y 1 9 5 7 . I n t h e f i r s t y e a r s o f

e x i s t e n c e , t h e L V C V A a c q u i r e d l a n d a n d b e g a n c o n s t r u c t i o n o f

c o n v e n t i o n h a l l f a c i l i t i e s

a t t h e L a s V e g a s C o n v e n t i o n C e n t e

r ( L V C C ) , w h i c h i n c l u d e d a 1 5 0 , 0 0 0

s . f . e x h i b i t h a l l , r o t u n d a , a n d

m e e t i n g r o o m s . T h e o r i g i n a l c o s t w a s $ 4 . 5 M M .

T h e L V C V A a c q u i r e d 2 0

a c r e s o f l a n d a n d c o m p l e t e d c o n s t r u c t i o n o f t h e o r i g i n a l 9 0 , 0 0 0 s . f . s o u t h c a m p u s e x h i b i t i o n s p a c e i n

1 9 6 7 . T h e s p a c e i s n o w w

i t h i n t h e c u r r e n t C 2 C e n t r a l H a l l .

T h e L V C V A c o n s t r u c t e d S a m B o y d S t a d i u m ( L a s V e g a s S t a d i u

m ) a t a n o r i g i n a l c o s t o f a p p r o x i m a t e l y $ 3 . 5 M M i n t h e e a r l y 1 9 7 0 ' s

a n d c o n t i n u e d t o i m p r o v

e t h e f a c i l i t y , i n v e s t i n g a n a d d i t i o n a l $ 3 M M b e f o r e i t w a s t r a n s f e r r e d t o U N L V i n F Y 1 9 8 5 .

I n 1 9 7 9 , t h e L V C V A f u n d e

d t h e 1 8 , 0 0 0 s . f . e x p a n s i o n o f S a m B o

y d s t a d i u m t�

Las Vegas Convention Center Expansion Proposal To SNTIC From April 28th 2016

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